omniture

Baidu Announces Fourth Quarter and Fiscal Year 2019 Results

2020-02-28 05:30 8976

BEIJING, Feb. 28, 2020 /PRNewswire/ -- Baidu, Inc. (NASDAQ: BIDU) ("Baidu" or the "Company"), a leading search engine, knowledge and information centered Internet platform and AI company, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019[1].

"We finished 2019 making tremendous progress in strengthening Baidu's mobile ecosystem. Through the building blocks of BJH publisher accounts, Smart Mini Program and Managed Page, Baidu App provides users single log-on, native-app-like experience to a wide range of information and services dispersed across isolated mobile apps and HTML5 websites. Baidu App's spanning mobile ecosystem has resulted in more users logging in, DAUs growing robustly to 195 million in December, up 21% year over year, and in-app search queries increasing almost 30% year over year," said Robin Li, Chairman and CEO of Baidu. "Baidu new AI businesses have also made great strides in 2019, as we built leadership in smart devices, smart transportation and enterprise cloud solutions with Baidu's leading AI technologies."

"Baidu delivered solid fourth quarter results with increasing year-over-year revenue growth rate, allowing 2019 revenue to reach RMB 107 billion, or US$15.4 billion," said Herman Yu, CFO of Baidu. "Baidu's quarterly operating margin has also been improving, through the strengthening of Baidu's mobile ecosystem and our focus on resource investment returns. Our leaner financial model and strong balance sheet put us in a good position to weather the slowing macro, while continuing to invest heavily in technology and new businesses, to optimize future growth."

Fourth Quarter 2019 Financial Highlights


Baidu, Inc.


For the three-month ended

(In millions except for per ADS information,
unaudited)

December 31,
2018


September 30,
2019


December 31,
2019


YOY


QOQ


December 31,
2019


RMB


RMB


RMB






US$

Total revenues 

27,195


28,080


28,884


6%


3%


4,149

Operating income

1,112


2,355


4,655


319%


98%


669

Operating margin

4%


8%


16%







Non-GAAP operating income

2,747


3,691


6,753


146%


83%


970

Non-GAAP operating margin

10%


13%


23%



















Net income (loss) attributable to Baidu

2,081


(6,373)


6,345


205%


-


911

Net margin

8%


(23%)


22%







Non-GAAP net income attributable to Baidu

4,703


4,387


9,193


95%


110%


1,320

Non-GAAP net margin

17%


16%


32%







Diluted earnings (loss) per ADS

5.93


(18.37)


18.25


208%


-


2.62

Non-GAAP diluted earnings per ADS

13.42


12.61


26.54


98%


110%


3.81














Baidu Core


For the three-month ended

(In millions except for per ADS information,

December 31,


September 30,


December 31,






December 31,

unaudited)

2018


2019


2019


YOY


QOQ


2019


RMB


RMB


RMB






US$

Total revenues 

20,520


21,010


21,711


6%


3%


3,119

Operating income

4,433


5,191


6,870


55%


32%


987

Operating margin

22%


25%


32%







Non-GAAP operating income

5,788


6,224


8,492


47%


36%


1,220

Non-GAAP operating margin

28%


30%


39%







Net income (loss) attributable to Baidu Core

4,050


(4,287)


7,433


84%


-


1,068

Net margin

20%


(20%)


34%







Non-GAAP net income attributable to Baidu Core

6,513


6,310


9,950


53%


58%


1,429

Non-GAAP net margin

32%


30%


46%







Fiscal Year 2019 Financial Highlights


Baidu, Inc.


For the twelve-month ended 

(In millions except for per ADS information, 

December 31,


December 31,






December 31,

unaudited)

2018


2019


YOY


YOY[2] 


2019


RMB


RMB






US$

Total revenues 

102,277


107,413


5%


8%


15,429

Operating income

15,530


6,307


(59%)




906

Operating margin 

15%


6%







Non-GAAP operating income

20,425


12,800


(37%)




1,839

Non-GAAP operating margin 

20%


12%







Net income attributable to Baidu

27,573


2,057


(93%)




296

Net margin

27%


2%







Non-GAAP net income attributable to Baidu

23,976


18,182


(24%)




2,612

Non-GAAP net margin

23%


17%







Diluted earnings per ADS

78.03


5.60


(93%)




0.80

Non-GAAP diluted earnings per ADS

68.17


52.04


(24%)




7.48












Baidu Core


For the twelve-month ended 

(In millions except for per ADS information, 

December 31,


December 31,






December 31,

unaudited)

2018


2019


YOY


YOY[2]


2019


RMB


RMB






US$

Total revenues 

78,271


79,711


2%


6%


11,450

Operating income

23,808


15,261


(36%)




2,192

Operating margin 

30%


19%







Non-GAAP operating income

28,020


20,311


(28%)




2,917

Non-GAAP operating margin 

36%


25%







Net income attributable to Baidu Core

33,605


7,580


(77%)




1,089

Net margin

43%


10%







Non-GAAP net income attributable to Baidu Core

29,059


22,824


(21%)




3,278

Non-GAAP net margin

37%


29%







Other Highlights

Corporate

  • Baidu employees have devoted significant efforts to help contain the novel coronavirus outbreak and fulfill the Company's corporate social responsibility, including the following:
    - On Baidu App, the Company launched a free medical consultation platform, to provide online access to doctors, answer pneumonia-related questions and save hospital resources. Baidu also partnered with medical experts to provide authoritative information on the novel coronavirus and leveraged its large platform reach to make available timely, reliable information to the public.
    - Baidu Maps is providing timely information, including the location of traffic control areas, designated hospitals and infected cases, to help users cope with the coronavirus outbreak. By leveraging big data, Baidu Maps helps track population migration and predict the spread of the epidemic in China.
    - Baidu leveraged its facial recognition and other AI technologies to develop and deploy many fever-screening systems to railway stations, hospitals and municipal government buildings in China. Baidu's fever-screening system can remotely measure the temperature of up to 200 people per minute, detect body temperatures of people wearing face masks and hats, and identify those not wearing masks or wearing them improperly. Baidu's AI model has also been open sourced, to further help reduce the spread of the coronavirus.
    - Baidu has pledged RMB 300 million to these efforts, provide awareness education and improve public health in China.
  • The Company reported its ESG progress for 2019, noting: 1) Baidu AI has helped reunite over 10,000 missing persons with their families; and 2) Baidu data centers reduced carbon emissions by over 180,000 tons in 2019, with the average power usage effectiveness (PUE) of its data centers reaching 1.14, far exceeding the global industry average of 1.67 according to Uptime Institute, a globally recognized data center advisory organization.
  • Baidu returned $149 million to its shareholders in the fourth quarter of 2019, under the 2019 Share Repurchase Program.

Mobile Ecosystem

  • Baidu App's average daily active users ("DAUs") reached 195 million, up 21% year over year, in December 2019.
  • Baidu App's large user scale and unique search-plus-feed distribution channels are attracting more original content creators, with BJH publisher accounts for Baidu feed, reaching 2.6 million, up 38% year over year, in December 2019.
  • Baidu has partnered with major TV and provincial satellite stations, to provide TV streaming and VOD in Baidu App and short video apps. Through Baidu's mobile building blocks, TV stations can leverage Baidu's powerful content distribution channels to extend their reach and allow online users to engage with the TV shows.
  • Merchants with HTML5 websites across many industries are switching to Baidu Managed Page, as the landing page for their search result. Revenue from Baidu Managed Page reached almost a quarter of Baidu Core's online marketing services revenue in the fourth quarter of 2019.
  • Merchants with app development capabilities are adopting Baidu Smart Mini Program, whose monthly active users ("MAUs") reached 316 million, up 114% year over year, in December 2019.
  • All six major express delivery companies in China have adopted Baidu Smart Mini Program, which provides native-app-like experience to logged-in users, such as allowing them to check the shipping status of their e-commerce orders and request for an express delivery simply by searching "express delivery" in Baidu App.
  • Baidu Smart Mini Program is also extending its reach to government services. For example, employees in China can check the information of their housing fund, similar to social security in the U.S., by simply scanning their face with Baidu App, as a logged-in user.

DuerOS

  • Monthly voice queries on DuerOS, a leading voice assistant for the Chinese language, surpassed 5.0 billion, up over 3 fold year over year, in December 2019. Monthly voice queries from Xiaodu first-party devices were 2.3 billion, up over 7 fold year over year.
  • DuerOS skills store now offers over 3,600 skills in wide ranging genres, including online education, gaming and live streaming. DuerOS developer community has expanded to over 38,000 members.
  • Xiaodu smart speakers ranked #1 in smart speaker shipments in China and Xiaodu Smart Display ranked #1 in smart display shipments globally for full year 2019, according to well-recognized market analytics firms Strategy Analytics and Canalys.
  • Baidu released Xiaodu Smart Display X8 in December 2019, with enhanced capabilities powered by Baidu AI, allowing users to wake the device up with eye gestures, pause streaming content with hand gestures and receive report on moving objects in the house when the owner leaves home.

Cloud, AI Services & AI Platform 

  • Baidu partnered with Shanghai Pudong Development Bank, to launch a blockchain alliance with major Chinese commercial banks for inter-bank information verification built on Baidu's Blockchain as a Service (BaaS) platform.
  • In November 2019, Baidu released its end-to-end far-field Automatic Speech Recognition (ASR) solutions, based on in-house designed Baidu Honghu AI chip. Baidu Brain's leading speech recognition capabilities are used across Baidu products, including Xiaodu smart speakers, DuerOS in-vehicle infotainment, Baidu Maps and Baidu call-center enterprise solutions. Developers have tapped Baidu Brain's speech recognition engine on Baidu open AI platform more than 10 billion times.
  • Baidu is applying Baidu Kunlun, its high-performance AI chip, optimizing visual, speech, natural language processing and other AI capabilities, to power the Company's cloud servers.
  • In December 2019, Baidu's pre-training framework for language understanding, ERNIE (Enhanced Representation through kNowledge IntEgration), became the first to score above 90 on the General Language Understanding Evaluation benchmark, or GLUE, which is widely considered as the benchmark for testing AI language understanding and otherwise dominated by U.S. technology firms and universities. ERNIE powers Baidu search and Xiaodu smart devices, to provide the best user experience.
  • Baidu Maps has been selected by Tesla China to provide map cloud services, such as real-time traffic condition reporting, base map display and point-of-interest search. Baidu Maps is a leading location based service platform, supporting 1.8 million developers and tracking 2 billion daily kilometers.

Apollo

  • Baidu partnered with Cangzhou, Hebei province, to develop smart transportation using Baidu's V2X solutions to improve traffic condition and safety. The adoption of Baidu's V2X solutions has led to a second Apollo robotaxi pilot program, launched in November 2019, with an initial fleet of 30 vehicles.
  • Baidu also partnered with Yinchuan, Ningxia province, to provide the provincial capital with Baidu's V2X solutions to support autonomous trucking.
  • At the Apollo Partner Conference in December 2019, Apollo v5.5 was released to support urban road point-to-point autonomous driving, as well as open-platform development for V2X and IoV solutions. Apollo has garnered 177 leading OEMs, suppliers and other partners, and over 36,000 developers worldwide.
  • Apollo fleet has reached 3 million test kilometers on the road in December 2019, spanning across 23 cities, including Beijing, Wuhan, Cangzhou and Changchun. The municipality of Beijing granted Baidu its first batch of 40 manned autonomous driving licenses in December 2019.

iQIYI

  • iQIYI subscribers reached 106.9 million in December 2019, adding 19.5 million subscribers year over year. iQIYI's large subscriber base further strengthens iQIYI's foundation to produce entertainment-oriented blockbuster originals.

Fourth Quarter 2019 Results

Total revenues reached RMB 28.9 billion ($4.15 billion), up 6% year over year and 3% quarter over quarter. Online marketing revenues were RMB 20.8 billion ($2.98 billion), decreasing 2% year over year and increasing 2% quarter over quarter. Other revenues were RMB 8.1 billion ($1.17 billion), increasing 35% year over year, driven mainly by the strong growth in cloud services, smart devices and iQIYI membership.

Revenue from Baidu Core reached RMB 21.7 billion ($3.12 billion), increasing 6% year over year and 3% quarter over quarter. Revenue from iQIYI reached RMB 7.5 billion ($1.08 billion), up 7% year over year. iQIYI membership revenue grew 21% year over year, offset by online advertising revenue declining 15% year over year.

Cost of revenues, were RMB 15.5 billion ($2.23 billion), decreasing 1% year over year, primarily due to a decrease in content costs and traffic acquisition costs, offset by increases in hardware and cloud cost of goods sold, impairment and amortization of intangible assets and depreciation expenses.

Selling, general and administrative expenses were RMB 4.0 billion ($568 million), decreasing 33% year over year, primarily due to decreased investment in channel spending and promotional marketing, as well as lower personnel related expenses.

Research and development expenses were RMB 4.8 billion ($683 million), increasing 5% year over year, primarily due to an increase in personnel related expenses.

Operating income was RMB 4.7 billion ($669 million) and operating margin was 16%. Baidu Core operating income was RMB 6.9 billion ($987 million), and Baidu Core operating margin was 32%.

Non-GAAP operating income was RMB 6.8 billion ($970 million), and non-GAAP operating margin was 23%. Non-GAAP Baidu Core operating income was RMB 8.5 billion ($1.22 billion), and non-GAAP Baidu Core operating margin was 39%.               

Total other income was RMB 699 million ($101 million), compared to total other loss of RMB 60 million for Q4 2018.

Income tax expense was RMB 304 million ($44 million), compared to RMB 484 million in Q4 2018.

Net income attributable to Baidu was RMB 6.3 billion ($ 911 million), and diluted earnings per ADS was RMB 18 ($2.62). Net income attributable to Baidu Core was RMB 7.4 billion ($1.07 billion). Non-GAAP net income attributable to Baidu was RMB 9.2 billion ($1.32 billion), and non-GAAP net margin was 32%. Non-GAAP diluted earnings per ADS amounted to RMB 27 ($3.81). Non-GAAP net income attributable to Baidu Core was RMB 10.0 billion ($1.43 billion), and non-GAAP net margin for Baidu Core was 46%.

Adjusted EBITDA was RMB 8.2 billion ($1.17 billion) and adjusted EBITDA margin was 28%. Adjusted EBITDA to Baidu Core was RMB 9.8 billion ($1.41 billion) and adjusted EBITDA margin for Baidu Core was 45%. 

As of December 31, 2019, cash, cash equivalents, restricted cash and short-term investments were RMB 147.4 billion ($21.17 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI were RMB 135.9 billion ($19.52 billion). Free cash flow was RMB 10.1 billion ($1.46 billion). Free cash flow excluding iQIYI was RMB 8.0 billion ($1.15 billion).

Fiscal Year 2019 Results

Total revenues reached RMB 107.4 billion ($15.43 billion), increasing 5% year over year, or 8% year over year, excluding the impact of announced divestures2. Online marketing revenues were RMB 78.1 billion ($11.22 billion), decreasing 5 % year over year. Other revenues were RMB 29.3 billion ($4.21 billion), increasing 44% year over year, driven mainly by the strong growth in iQIYI membership, cloud services and smart devices.

Revenue from Baidu Core reached RMB 79.7 billion ($11.45 billion), increasing 2% year over year, or increasing 6% year over year, excluding the impact of announced divestures2. Revenue from iQIYI reached RMB 29.0 billion ($4.17 billion), up 16% year over year. iQIYI membership revenue grew 36% year over year, offset by online advertising revenue declining 11% year over year.

Cost of revenues were RMB 62.9 billion ($9.03 billion), increasing 21% year over year, primarily due to increases in hardware and cloud cost of goods sold, content costs, depreciation expense, traffic acquisition costs and bandwidth costs.

Selling, general and administrative expenses were RMB 19.9 billion ($2.86 billion), increasing 4% year over year.

Research and development expenses were RMB 18.3 billion ($2.64 billion), increasing 16% year over year, primarily due to an increase in personnel related expenses.

Operating income was RMB 6.3 billion ($906 million) and operating margin was 6%. Baidu Core operating income was RMB 15.3 billion ($2.19 billion), and Baidu Core operating margin was 19%.

Non-GAAP operating income was RMB 12.8 billion ($1.84 billion), and non-GAAP operating margin was 12%. Non-GAAP Baidu Core operating income was RMB 20.3 billion ($2.92 billion), and non-GAAP Baidu Core operating margin was 25%.

Total other loss was RMB 6.6 billion ($955 million), mainly due to loss on equity investment arising from other-than-temporary decline, compared to total other income of RMB 11.8 billion for 2018, which was mainly due to disposal gains from Du Xiaoman and Global DU businesses. In Q4 2015, following a transaction where the Company exchanged shares of its majority-owned subsidiary Qunar for a minority stake in Trip.com, the Company deconsolidated Qunar, recorded its investment in Trip.com at the closing-date market value and recognized a non-cash accounting gain of RMB 24.4 billion. Since then, the market value of Trip.com shares has declined, and the continued low market price in 2019 resulted in the Company recognizing a non-cash impairment loss of RMB 8.9 billion in Q3 2019. In October 2019, the Company sold down its holding in Trip.com, reducing its interest from 19% to 12% of Trip.com's outstanding shares.

Income tax expense was RMB 1.9 billion ($279 million), compared to RMB 4.7 billion in 2018. The decrease in income tax expense was mainly due to lower taxable income from Baidu Core.

Net income attributable to Baidu was RMB 2.1 billion ($296 million), and diluted earnings per ADS was RMB 6 ($0.80). Net income attributable to Baidu Core was RMB 7.6 billion ($1.09 billion). Non-GAAP net income attributable to Baidu was RMB 18.2 billion ($2.61 billion), and non-GAAP net margin was 17%. Non-GAAP diluted earnings per ADS amounted to RMB 52 ($7.48). Non-GAAP net income attributable to Baidu Core was RMB 22.8 billion ($3.28 billion), and non-GAAP net margin for Baidu Core was 29%.

Adjusted EBITDA was RMB 18.4 billion ($2.65 billion) and adjusted EBITDA margin was 17%. Adjusted EBITDA to Baidu Core was RMB 25.5 billion ($3.66 billion) and adjusted EBITDA margin for Baidu Core was 32%. 

Free cash flow was RMB 22.0 billion ($3.17 billion). Free cash flow excluding iQIYI was RMB 18.9 billion ($2.71 billion).

Financial Guidance

For the first quarter of 2020, Baidu expects revenues to be between RMB 21.0 billion ($3.0 billion) and RMB 22.9 billion ($3.3 billion), representing a decline of 5% to 13% year over year, which assumes that Baidu Core revenue will decline between 10% and 18% year over year. The Coronavirus situation in China is evolving, and business visibility is very limited. The above forecast reflects Baidu's current and preliminary view, which is subject to substantial uncertainty.

Conference Call Information

Baidu's management will hold an earnings conference call at 8:15 PM on February 27, 2020, U.S. Eastern Time (9:15 AM on February 28, 2020, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows:

International:

+65 67135090

China                   

4006208038

US:

+1 8456750437

UK:

+44 2036214779

Hong Kong:

+852 30186771



Passcode for all regions:

1571908

A replay of the conference call may be accessed by phone at the following number until March 6, 2020:

International:

+61 2 8199 0299

Passcode:

1571908

Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com.

About Baidu

Baidu, Inc. is a leading search engine, knowledge and information centered Internet platform and AI company. The Company's mission is to make a complicated world simpler through technology. Baidu's ADSs trade on the NASDAQ Global Select Market under the symbol "BIDU". Currently, ten ADSs represent one Class A ordinary share.

Contacts

Investors Relations, Baidu, Inc.
Tel: +86-10-5992-8888
Email: ir@baidu.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the outlook for the first quarter of 2020, quotations from management in this announcement, as well as Baidu's and other parties' strategic and operational plans, contain forward-looking statements. Baidu may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Baidu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Baidu's growth strategies; its future business development, including development of new products and services; its ability to attract and retain users and customers; competition in the Chinese Internet search and newsfeed market; competition for online marketing customers; changes in the Company's revenues and certain cost or expense items as a percentage of its revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to intellectual property rights; the expected growth of the Chinese-language Internet search and newsfeed market and the number of Internet and broadband users in China; Chinese governmental policies relating to the Internet and Internet search providers, and general economic conditions in China and elsewhere. Further information regarding these and other risks is included in the Company's annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and Baidu undertakes no duty to update such information, except as required under applicable law.

Non-GAAP Financial Measures

To supplement Baidu's consolidated financial results presented in accordance with GAAP, Baidu uses the following non-GAAP financial measures: non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) attributable to Baidu, non-GAAP net margin, non-GAAP diluted earnings per ADS, adjusted EBITDA, adjusted EBITDA margin and free cash flow. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain items that may not be indicative of its recurring core business operating results, such as operating performance excluding not only non-cash charges, but also other items that are infrequent or unusual in nature. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to Baidu's historical performance and liquidity. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company's results of operations. These non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data.

Non-GAAP operating income represents operating income excluding share-based compensation expenses and amortization of intangible assets resulting from business combinations.

Non-GAAP net income attributable to Baidu represents net income attributable to Baidu excluding share-based compensation expenses, amortization and impairment of intangible assets resulting from business combinations, disposal gain or loss, impairment of long-term investments, fair value change of long-term investments, adjusted for related income tax effects. Baidu's share of equity method investments for these non-GAAP reconciling items, amortization of intangible assets not on the investees' books, accretion of their redeemable non-controlling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects, are also excluded.

Non-GAAP diluted earnings per ADS represents diluted earnings per ADS calculated by dividing non-GAAP net income attributable to Baidu, which is adjusted for accretion for the redeemable non-controlling interests, by the weighted average number of ordinary shares expressed in ADS. Adjusted EBITDA represents operating income excluding depreciation, amortization of intangible assets resulting from business combinations, and share-based compensation expenses. Free cash flow represents net cash provided by operating activities less capital expenditures.

For more information on non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable GAAP measures."

[1]

Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.9618 to US$1.00, the exchange rate in effect as of December 31, 2019 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. Translations are provided solely for the convenience of the reader.



[2]

Excluding revenue from divested businesses, which was approximately RMB3.1 billion for the twelve-months ended December 31, 2018.

 

 


 

Baidu, Inc. 

Condensed Consolidated Balance Sheets

(In millions except for share information, unaudited)



December 31,


December 31,


December 31,



2018


2019


2019



RMB


RMB


USD

ASSETS







    Current assets:







 Cash and cash equivalents


27,638


33,443


4,804

 Restricted cash


2,189


996


143

 Short-term investments


111,626


112,924


16,221

 Accounts receivable, net


6,015


7,416


1,065

 Amounts due from related parties


785


1,594


229

 Other assets, current 


6,841


9,189


1,320

    Total current assets


155,094


165,562


23,782








    Non-current assets:







 Fixed assets, net


17,903


18,311


2,630

 Intangible assets, net


9,181


7,887


1,133

 Goodwill


18,536


18,250


2,621

 Long-term investments, net


80,454


69,410


9,970

 Amounts due from related parties


4,297


3,564


512

 Deferred tax assets, net


2,324


2,193


315

 Operating lease right-of-use assets


-


7,332


1,053

 Other assets, non-current 


9,777


8,807


1,264

    Total non-current assets


142,472


135,754


19,498








Total assets


297,566


301,316


43,280








LIABILITIES AND EQUITY







   Current liabilities:







      Short-term loans


3,046


2,618


376

Accounts payable and accrued liabilities


35,381


32,701


4,698

Customer deposits and deferred revenue


9,221


11,062


1,589

Deferred income


523


529


76

Long-term loans, current portion


84


737


106

Notes payable, current portion


6,871


5,219


750

Amounts due to related parties


1,727


2,231


320

Operating lease liabilities


-


2,283


328

    Total current liabilities


56,853


57,380


8,243








    Non-current liabilities:







Deferred income


54


17


2

Deferred revenue


1,309


1,009


145

Amounts due to related parties


4,360


3,846


552

Long-term loans


7,456


7,804


1,121

Notes payable


42,735


38,090


5,471

Convertible senior notes


4,712


12,297


1,766

Deferred tax liabilities


4,099


3,273


470

Operating lease liabilities


-


4,486


644

Other non-current liabilities


236


299


44

    Total non-current liabilities


64,961


71,121


10,215








Total liabilities


121,814


128,501


18,458








Redeemable noncontrolling interests


716


1,109


159








Equity







Class A Ordinary Shares, par value US$0.00005 per share, 825,000,000 shares authorized, and  27,733,692 shares and  27,381,621 shares issued and outstanding as at December 31, 2018 and  December 31, 2019


-


-


-

Class B Ordinary Shares, par value US$0.00005 per share, 35,400,000 shares authorized, and  7,201,254 shares and 7,201,254 shares issued and outstanding as at December 31, 2018 and December 31, 2019


-


-


-

Additional paid-in capital


33,441


38,714


5,561

Retained earnings


129,246


126,268


18,137

Accumulated other comprehensive income


210


(1,383)


(199)

    Total Baidu shareholders' equity


162,897


163,599


23,499

    Noncontrolling interests


12,139


8,107


1,164

Total equity


175,036


171,706


24,663








Total liabilities, redeemable noncontrolling interests, and equity


297,566


301,316


43,280

 

 

 

Baidu, Inc. 

Condensed Consolidated Statements of Income (Loss)

(In millions except for share, per share (or ADS) information, unaudited)


Three Months Ended


Twelve Months Ended


December 31,


September 30,


December 31,


December 31,


December 31,


December 31,


December 31,


2018


2019


2019


2019


2018


2019


2019


RMB


RMB


RMB


USD


RMB


RMB


USD

 Revenues: 














 Online marketing services 

21,197


20,434


20,765


2,983


81,912


78,093


11,217

 Others 

5,998


7,646


8,119


1,166


20,365


29,320


4,212

 Total revenues  

27,195


28,080


28,884


4,149


102,277


107,413


15,429










 · 


 · 



 Operating costs and expenses: 














     Cost of revenues(1)

15,611


16,378


15,517


2,229


51,744


62,850


9,028

     Selling, general and administrative(1)

5,943


4,657


3,956


568


19,231


19,910


2,860

     Research and development(1)

4,529


4,690


4,756


683


15,772


18,346


2,635

 Total operating costs and expenses 

26,083


25,725


24,229


3,480


86,747


101,106


14,523

 Operating income 

1,112


2,355


4,655


669


15,530


6,307


906















 Other income (loss): 














 Interest income 

1,490


1,687


2,096


301


4,451


6,060


870

 Interest expense 

(574)


(788)


(674)


(97)


(1,883)


(2,960)


(425)

 Foreign exchange income (loss), net 

(50)


29


35


5


(122)


(33)


(5)

 Loss from equity method investment 

(390)


(729)


(94)


(14)


(79)


(1,254)


(180)

 Other income (loss), net 

(536)


(9,683)


(664)


(94)


9,428


(8,460)


(1,215)

 Total other income (loss), net 

(60)


(9,484)


699


101


11,795


(6,647)


(955)















 Income (loss) before income taxes 

1,052


(7,129)


5,354


770


27,325


(340)


(49)

 Income tax expense 

484


934


304


44


4,743


1,948


279

 Net income (loss) 

568


(8,063)


5,050


726


22,582


(2,288)


(328)

 Less: net income (loss) attributable to noncontrolling interests 

(1,513)


(1,690)


(1,295)


(185)


(4,991)


(4,345)


(624)

 Net income (loss) attributable to Baidu 

2,081


(6,373)


6,345


911


27,573


2,057


296





























Earnings (loss) per ADS (1 Class A ordinary share equals 10 ADSs):














 -Basic

5.96


(18.37)


18.28


2.63


78.64


5.68


0.82

 -Diluted

5.93


(18.37)


18.25


2.62


78.03


5.60


0.80

Earnings (loss) per share for Class A and Class B ordinary shares:














 -Basic

59.55


(183.74)


182.82


26.26


786.36


56.84


8.16

 -Diluted

59.32


(183.74)


182.53


26.22


780.27


55.96


8.04

Weighted average number of Class A and Class B ordinary shares outstanding:













Basic 

34,909,960


34,793,154


34,586,035


34,586,035


34,898,589


34,834,497


34,834,497

Diluted

35,044,338


34,793,154


34,613,834


34,613,834


35,171,043


34,884,854


34,884,854















(1)  Includes share-based compensation expenses as follows:

 Cost of revenues 

71


70


92


13


224


327


47

 Selling, general and administrative 

587


336


413


60


1,725


1,768


254

 Research and development 

884


810


1,073


154


2,727


3,531


507

 Total share-based compensation expenses 

1,542


1,216


1,578


227


4,676


5,626


808















(2)  All translations from RMB to U.S. dollars are made at a rate of RMB 6.9618 to US$1.00, the exchange rate in effect as of December 31, 2019 as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.

 

 

 

Baidu, Inc. 

Selected Information

(In millions except for per ADS information, unaudited)


Three months ended
December 31, 2018 (RMB)


Three months ended
September 30, 2019 (RMB)


Three months ended
December 31, 2019 (RMB)


Three months ended
December 31, 2019 (USD)


Baidu Core

iQIYI

Elim & adj(2)


Baidu, Inc.


Baidu Core

iQIYI

Elim & adj(2)


Baidu, Inc.


Baidu Core

iQIYI

Elim & adj(2)


Baidu, Inc.


Baidu Core

iQIYI

Elim & adj(2)


Baidu, Inc.

Total revenues 

20,520

7,028

(353)


27,195


21,010

7,397

(327)


28,080


21,711

7,497

(324)


28,884


3,119

1,077

(47)


4,149

  YOY













6%

7%



6%







  QOQ













3%

1%



3%































Operating costs and expenses: 
























  Cost of revenues (1)

7,374

8,523

(286)


15,611


8,502

8,176

(300)


16,378


8,215

7,914

(612)


15,517


1,180

1,137

(88)


2,229

  Selling, general and administrative (1)

4,790

1,222

(69)


5,943


3,320

1,350

(13)


4,657


2,575

1,400

(19)


3,956


370

201

(3)


568

  Research and development (1)

3,923

608

(2)


4,529


3,997

703

(10)


4,690


4,051

711

(6)


4,756


582

102

(1)


683

Total operating costs and expenses 

16,087

10,353

(357)


26,083


15,819

10,229

(323)


25,725


14,841

10,025

(637)


24,229


2,132

1,440

(92)


3,480

  YOY













(8%)

(3%)



(7%)







  Cost of revenues 













11%

(7%)



(1%)







  Selling, general and administrative 













(46%)

15%



(33%)







  Research and development 













3%

17%



5%































Operating income (loss)

4,433

(3,325)

4


1,112


5,191

(2,832)

(4)


2,355


6,870

(2,528)

313


4,655


987

(363)

45


669

  YOY













55%

(24%)



319%







  QOQ













32%

(11%)



98%







Operating margin 

22%

(47%)



4%


25%

(38%)



8%


32%

(34%)



16%































  Add: total other income (loss),net

(30)

(35)

5


(60)


(8,657)

(827)



(9,484)


624

75

-


699


90

11

-


101

  Less: income tax expense

405

79

-


484


918

16



934


281

23

-


304


41

3

-


44

  Less: net income (loss) attributable to NCI

(52)

38

(1,499)

(3)

(1,513)


(97)

13

(1,606)

(3)

(1,690)


(220)

18

(1,093)

(3)

(1,295)


(32)

3

(156)

(3)

(185)

Net income(loss) attributable to Baidu

4,050

(3,477)

1,508


2,081


(4,287)

(3,688)

1,602


(6,373)


7,433

(2,494)

1,406


6,345


1,068

(358)

201


911

  YOY













84%

(28%)



205%







  QOQ













-

(32%)



-







Net margin 

20%

(49%)



8%


(20%)

(50%)



(23%)


34%

(33%)



22%































Other Key Metrics
























Non-GAAP operating income (loss)

5,788

(3,045)



2,747


6,224

(2,529)



3,691


8,492

(2,052)



6,753


1,220

(295)



970

  YOY













47%

(33%)



146%







  QOQ













36%

(19%)



83%







Non-GAAP operating margin 

28%

(43%)



10%


30%

(34%)



13%


39%

(27%)



23%































Non-GAAP net income (loss) attributable to Baidu

6,513

(3,196)



4,703


6,310

(3,394)



4,387


9,950

(1,901)



9,193


1,429

(273)



1,320

  YOY













53%

(41%)



95%







  QOQ













58%

(44%)



110%







Non-GAAP net margin 

32%

(45%)



17%


30%

(46%)



16%


46%

(25%)



32%































Adjusted EBITDA

6,870

(2,952)



3,922


7,525

(2,405)



5,116


9,788

(1,926)



8,175


1,406

(277)



1,174

Adjusted EBITDA margin 

33%

(42%)



14%


36%

(33%)



18%


45%

(26%)



28%























































(1)  Includes share-based compensation as follows:

 Cost of revenues 

43

28



71


25

45



70


43

49



92


6

7



13

 Selling, general and administrative 

435

152



587


207

129



336


220

193



413


32

28



60

 Research and development 

843

41



884


749

61



810


1,001

72



1,073


144

10



154

 Total share-based compensation 

1,321

221



1,542


981

235



1,216


1,264

314



1,578


182

45



227

 (2) Relates to intersegment eliminations and adjustments 

 (3) Relates to the net loss attributable to iQIYI noncontrolling interests 

 

 

 

Baidu, Inc. 

Selected Information

(In millions except for per ADS information, unaudited)


Twelve months ended
December 31, 2018 (RMB)


Twelve months ended
December 31, 2019 (RMB)


Twelve months ended
December 31, 2019 (USD)


Baidu Core

iQIYI

Elim & adj(3)


Baidu, Inc.


Baidu Core

iQIYI

Elim & adj(3)


Baidu, Inc.


Baidu Core

iQIYI

Elim & adj(3)


Baidu, Inc.

Total revenues 

78,271

24,989

(983)


102,277


79,711

28,994

(1,292)


107,413


11,450

4,165

(186)


15,429

  YOY







2%

16%



5%







  YOY excluding revenue from divested businesses(1)







2%




5%

























Operating costs and expenses: 


















  Cost of revenues (2)

25,370

27,133

(759)


51,744


34,019

30,348

(1,517)


62,850


4,887

4,359

(218)


9,028

  Selling, general and administrative (2)

15,310

4,168

(247)


19,231


14,733

5,237

(60)


19,910


2,116

753

(9)


2,860

  Research and development (2)

13,783

1,994

(5)


15,772


15,698

2,667

(19)


18,346


2,255

383

(3)


2,635

Total operating costs and expenses 

54,463

33,295

(1,011)


86,747


64,450

38,252

(1,596)


101,106


9,258

5,495

(230)


14,523

  YOY







18%

15%



17%







  Cost of revenues 







34%

12%



21%







  Selling, general and administrative 







(4%)

26%



4%







  Research and development 







14%

34%



16%

























Operating income (loss)

23,808

(8,306)

28


15,530


15,261

(9,258)

304


6,307


2,192

(1,330)

44


906

  YOY







(36%)

11%



(59%)







Operating margin 

30%

(33%)



15%


19%

(32%)



6%

























  Add: total other income (loss),net

13,169

(676)

(698)


11,795


(5,680)

(967)

-


(6,647)


(816)

(139)

-


(955)

  Less: income tax expense

4,664

79

-


4,743


1,896

52

-


1,948


272

7

-


279

  Less: net income (loss) attributable to NCI

(1,292)

49

(3,748)

(4)

(4,991)


105

46

(4,496)

(4)

(4,345)


15

7

(646)

(4)

(624)

Net income(loss) attributable to Baidu

33,605

(9,110)

3,078


27,573


7,580

(10,323)

4,800


2,057


1,089

(1,483)

690


296

  YOY







(77%)

13%



(93%)







Net margin 

43%

(36%)



27%


10%

(36%)



2%

























Other Key Metrics


















Non-GAAP operating income (loss)

28,020

(7,623)



20,425


20,311

(7,815)



12,800


2,917

(1,122)



1,839

  YOY







(28%)

3%



(37%)







Non-GAAP operating margin 

36%

(31%)



20%


25%

(27%)



12%

























Non-GAAP net income (loss) attributable to Baidu

29,059

(8,599)



23,976


22,824

(8,765)



18,182


3,278

(1,258)



2,612

  YOY







(21%)

2%



(24%)







Non-GAAP net margin 

37%

(34%)



23%


29%

(30%)



17%

























Adjusted EBITDA

31,438

(7,311)



24,155


25,451

(7,339)



18,416


3,655

(1,054)



2,646

Adjusted EBITDA margin 

40%

(29%)



24%


32%

(25%)



17%











































(1)  Excluding revenue from divested businesses, which was approximately RMB3.1 billion for the twelve months ended December 31, 2018. 

(2)  Includes share-based compensation as follows:

 Cost of revenues 

141

83



224


156

171



327


22

25



47

 Selling, general and administrative 

1,356

369



1,725


1,092

676



1,768


157

97



254

 Research and development 

2,623

104



2,727


3,293

238



3,531


473

34



507

 Total share-based compensation 

4,120

556



4,676


4,541

1,085



5,626


652

156



808

 (3) Relates to intersegment eliminations and adjustments 


















 (4) Relates to the net loss attributable to iQIYI noncontrolling interests 

 

 

 

Baidu, Inc. 

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)


Three months ended 


Three months ended 


Three months ended 


Three months ended 


December 31, 2018 (RMB)


 September 30, 2019 (RMB) 


 December 31, 2019 (RMB) 


December 31, 2019 (USD)


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.

Net cash provided by operating activities

8,409

528

8,937


8,508

293

8,801


8,688

2,343

11,031


1,248

337

1,585

Net cash provided by (used in) investing activities 

(5,146)

(6,412)

(11,558)


(11,960)

(922)

(12,882)


10,194

(2,089)

8,105


1,464

(300)

1,164

Net cash provided by (used in) financing activities

10,084

6,923

17,007


(1,903)

(160)

(2,063)


(1,181)

(259)

(1,440)


(170)

(37)

(207)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(239)

(110)

(349)


122

258

380


(254)

(178)

(432)


(36)

(26)

(62)

Net increase (decrease) in cash, cash equivalents and restricted cash 

13,108

929

14,037


(5,233)

(531)

(5,764)


17,447

(183)

17,264


2,506

(26)

2,480

Cash, cash equivalents and restricted cash
















  At beginning of period

9,959

5,831

15,790


15,315

7,624

22,939


10,082

7,093

17,175


1,448

1,019

2,467

  At end of period

23,067

6,760

29,827


10,082

7,093

17,175


27,529

6,910

34,439


3,954

993

4,947

















Net cash provided operating activities

8,409

528

8,937


8,508

293

8,801


8,688

2,343

11,031


1,248

337

1,585

Less: Capital expenditures

(2,900)

(178)

(3,078)


(1,031)

(181)

(1,212)


(652)

(232)

(884)


(94)

(33)

(127)

Free cash flow

5,509

350

5,859


7,477

112

7,589


8,036

2,111

10,147


1,154

304

1,458


































Twelve months ended 


Twelve months ended 


Twelve months ended 






December 31, 2018 (RMB)


 December 31, 2019 (RMB) 


December 31, 2019 (USD)






 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.


 Baidu excl. iQIYI

iQIYI

Baidu, Inc.





Net cash provided by operating activities

33,083

2,884

35,967


24,552

3,906

28,458


3,527

561

4,088





Net cash used in investing activities 

(13,511)

(20,949)

(34,460)


(8,225)

(11,749)

(19,974)


(1,181)

(1,688)

(2,869)





Net cash provided by (used in) financing activities

(8,393)

23,475

15,082


(11,753)

7,880

(3,873)


(1,688)

1,132

(556)





Effect of exchange rate changes on cash, cash equivalents and restricted cash

1,285

617

1,902


(112)

113

1


(16)

16

-





Net increase in cash, cash equivalents and restricted cash 

12,464

6,027

18,491


4,462

150

4,612


642

21

663





Cash, cash equivalents and restricted cash
















  At beginning of period

10,603

733

11,336


23,067

6,760

29,827


3,312

972

4,284





  At end of period

23,067

6,760

29,827


27,529

6,910

34,439


3,954

993

4,947





















Net cash provided operating activities

33,083

2,884

35,967


24,552

3,906

28,458


3,527

561

4,088





Less: Capital expenditures

(8,160)

(612)

(8,772)


(5,688)

(740)

(6,428)


(817)

(106)

(923)





Free cash flow

24,923

2,272

27,195


18,864

3,166

22,030


2,710

455

3,165





















Note: Baidu excl. iQIYI represents Baidu, Inc. minus iQIYI's consolidated cash flows.

 

 

 

Baidu, Inc. 

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures  

(In millions except for ADS and per ADS information, unaudited)


Three months ended 


Three months ended 


Three months ended 


Three months ended 


December 31, 2018 (RMB)


 September 30, 2019 (RMB) 


 December 31, 2019 (RMB) 


December 31, 2019 (USD)


Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.

Operating income (loss)

4,433

(3,325)

1,112


5,191

(2,832)

2,355


6,870

(2,528)

4,655


987

(363)

669

Add:  Share-based compensation expenses

1,321

221

1,542


981

235

1,216


1,264

314

1,578


182

45

227

Add:  Amortization and impairment of intangible assets(1)

34

59

93


52

68

120


358

162

520


51

23

74

Non-GAAP operating income (loss)

5,788

(3,045)

2,747


6,224

(2,529)

3,691


8,492

(2,052)

6,753


1,220

(295)

970

















Add:  Depreciation of fixed assets

1,082

93

1,175


1,301

124

1,425


1,296

126

1,422


186

18

204

Adjusted EBITDA

6,870

(2,952)

3,922


7,525

(2,405)

5,116


9,788

(1,926)

8,175


1,406

(277)

1,174

















Net income (loss) attributable to Baidu

4,050

(3,477)

2,081


(4,287)

(3,688)

(6,373)


7,433

(2,494)

6,345


1,068

(358)

911

Add: Share-based compensation expenses

1,319

221

1,444


974

235

1,106


1,257

314

1,433


181

45

206

Add: Amortization and impairment of intangible assets(1)(4)

19

47

46


21

50

47


15

131

88


2

19

13

Add: Disposal gain(4)

282

-

282


-

-

-


445

-

445


64

-

64

Add: Impairment of long-term investments(4)

185

-

185


8,023

-

8,023


465

141

544


66

20

78

Add: Fair value change of long-term investments(4)

16

13

23


745

1

745


(60)

(1)

(61)


(9)

-

(9)

Add: Reconciling items on equity method investments(4)

642

-

642


834

8

839


395

8

399


57

1

57

Non-GAAP net income (loss) attributable to Baidu

6,513

(3,196)

4,703


6,310

(3,394)

4,387


9,950

(1,901)

9,193


1,429

(273)

1,320

















Diluted earnings (loss) per ADS



5.93




(18.37)




18.25




2.62

Add:  Accretion of the redeemable noncontrolling interests



0.01




0.06




0.06




0.01

Add:  Non-GAAP adjustments to earnings per ADS



7.48




30.92




8.23




1.18

Non-GAAP diluted earnings per ADS



13.42




12.61




26.54




3.81

































(1) This represents amortization of intangible assets resulting from business combinations.

(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects.

(3) Non-GAAP measures are adjusted retroactively to exclude: 1) amortization of intangible assets resulting from business combinations ; and 2) share-based compensation and amortization of intangible assets not on their books, resulting from equity method pick-up; and 3) fair value change of the investees' long-term investments, net of tax, as follows:

(4) Net of related tax impact

















Non-GAAP operating income, previously reported

5,754

(3,104)

2,654


6,172

(2,597)

3,571


8,134

(2,214)

6,233


1,169

(318)

896

Add:  Amortization and impairment of intangible assets(1)

34

59

93


52

68

120


358

162

520


51

23

74

Non-GAAP operating income, revised

5,788

(3,045)

2,747


6,224

(2,529)

3,691


8,492

(2,052)

6,753


1,220

(295)

970

















Non-GAAP net income attributable to Baidu, previously reported

6,458

(3,243)

4,621


6,052

(3,452)

4,098


9,847

(2,040)

9,013


1,414

(293)

1,294

Add: Adjustments relating to equity-method investments, net of tax

36

-

36


237

8

242


88

8

92


13

1

13

Add: Amortization and impairment of intangible assets(1), net of tax

19

47

46


21

50

47


15

131

88


2

19

13

Non-GAAP net income attributable to Baidu, revised

6,513

(3,196)

4,703


6,310

(3,394)

4,387


9,950

(1,901)

9,193


1,429

(273)

1,320

















Adjusted EBITDA, previously reported

6,887

(2,877)

3,970


7,542

(2,345)

5,153


9,803

(1,549)

8,208


1,408

(223)

1,179

Less:  Adjustments to amortization/impairment of intangible assets

(17)

(75)

(48)


(17)

(60)

(37)


(15)

(377)

(33)


(2)

(54)

(5)

Adjusted EBITDA, revised

6,870

(2,952)

3,922


7,525

(2,405)

5,116


9,788

(1,926)

8,175


1,406

(277)

1,174

 

 

 

Baidu, Inc. 

Reconciliations of Non-GAAP Financial Measures to the Nearest Comparable GAAP Measures  

(In millions except for ADS and per ADS information, unaudited)



Twelve months ended 


Twelve months ended 


Twelve months ended 



December 31, 2018 (RMB)


 December 31, 2019 (RMB) 


December 31, 2019 (USD)



Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.


Baidu Core

iQIYI

Baidu, Inc.

Operating income (loss)


23,808

(8,306)

15,530


15,261

(9,258)

6,307


2,192

(1,330)

906

Add:  Share-based compensation expenses


4,120

556

4,676


4,541

1,085

5,626


652

156

808

Add:  Amortization and impairment of intangible assets(1)


92

127

219


509

358

867


73

52

125

Non-GAAP operating income (loss)


28,020

(7,623)

20,425


20,311

(7,815)

12,800


2,917

(1,122)

1,839














Add:  Depreciation of fixed assets


3,418

312

3,730


5,140

476

5,616


738

68

807

Adjusted EBITDA


31,438

(7,311)

24,155


25,451

(7,339)

18,416


3,655

(1,054)

2,646














Net income (loss) attributable to Baidu


33,605

(9,110)

27,573


7,580

(10,323)

2,057


1,089

(1,483)

296

Add: Share-based compensation expenses


4,118

556

4,454


4,515

1,085

5,126


649

156

736

Add: Amortization and impairment of intangible assets(1)(4)


59

104

123


71

282

226


10

41

32

Add: Disposal gain(4)


(6,388)

-

(5,684)


233

1

234


33

-

34

Add: Impairment of long-term investments(4)


566

-

566


8,929

164

9,031


1,283

24

1,298

Add: Fair value change of long-term investments(4)


(4,124)

(149)

(4,279)


(658)

(1)

(660)


(95)

-

(95)

Add: Reconciling items on equity method investments(4)


1,223

-

1,223


2,154

27

2,168


309

4

311

Non-GAAP net income (loss) attributable to Baidu


29,059

(8,599)

23,976


22,824

(8,765)

18,182


3,278

(1,258)

2,612














Diluted earnings per ADS




78.03




5.60




0.80

Add:  Accretion of the redeemable noncontrolling interests




0.37




0.22




0.03

Add:  Non-GAAP adjustments to earnings per ADS




(10.23)




46.22




6.65

Non-GAAP diluted earnings per ADS




68.17




52.04




7.48



























(1) This represents amortization of intangible assets resulting from business combinations.

(2) This represents Baidu's share of equity method investments for other non-GAAP reconciling items, amortization of intangible assets not on the investee's books, accretion of their redeemable noncontrolling interests, and the gain or loss associated with the issuance of shares by the investees at a price higher or lower than the carrying value per shares, adjusted for related income tax effects.

(3) Non-GAAP measures are adjusted retroactively to exclude: 1) amortization of intangible assets resulting from business combinations ; and 2) share-based compensation and amortization of intangible assets not on their books, resulting from equity method pick-up; and 3) fair value change of the investees' long-term investments, net of tax, as follows:

(4) Net of related tax impact














Non-GAAP operating income, previously reported


27,928

(7,750)

20,206


19,802

(8,173)

11,933


2,844

(1,174)

1,714

Add:  Amortization and impairment of intangible assets(1)


92

127

219


509

358

867


73

52

125

Non-GAAP operating income, revised


28,020

(7,623)

20,425


20,311

(7,815)

12,800


2,917

(1,122)

1,839














Non-GAAP net income attributable to Baidu, previously reported


28,471

(8,703)

23,324


21,841

(9,074)

17,030


3,137

(1,303)

2,446

Add: Adjustments relating to equity-method investments, net of tax


529

-

529


912

27

926


131

4

134

Add: Amortization and impairment of intangible assets(1), net of tax


59

104

123


71

282

226


10

41

32

Non-GAAP net income attributable to Baidu, revised


29,059

(8,599)

23,976


22,824

(8,765)

18,182


3,278

(1,258)

2,612














Adjusted EBITDA, previously reported


31,503

(7,091)

24,315


25,512

(6,768)

18,569


3,664

(972)

2,668

Less:  Adjustments to amortization/impairment of intangible assets


(65)

(220)

(160)


(61)

(571)

(153)


(9)

(82)

(22)

Adjusted EBITDA, revised


31,438

(7,311)

24,155


25,451

(7,339)

18,416


3,655

(1,054)

2,646

 

Cision View original content:http://www.prnewswire.com/news-releases/baidu-announces-fourth-quarter-and-fiscal-year-2019-results-301012829.html

Source: Baidu, Inc.
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